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Personal debt in Britain £1.4tn

Personal debt in Britain has reached £1.4 trillion, according to a study by the Centre for Social Justice. Around 3.9 million British families do not have enough savings to cover their rent or mortgage for more than a month, the report says.

Average UK household debt has risen to £54,000

Household debt has almost doubled in the last decade Credit: Press Association

Household debt has almost doubled in the last decade as more families struggle to pay their rent or mortgage, the Centre for Social Justice has warned.

The think tank - founded by the Work and Pensions Secretary Iain Duncan Smith - said British households now owe an average of £54,000, an increase from £29,000 a decade ago.

The study also found households in the poorest 10% of the country have average debts more than four times their annual income, with their average debt repayments amounting to nearly half their gross monthly income.